Having moved into the property I used to rent out, what will be the
capital gains tax implications when I sell?
Q.
I had an investment property that I rented for three years.
After this time I sold my previous principal residence and moved
into the ex-rental. I have now renovated and am living in this
property as my new principal residence. Will I ever have to pay
CGT? I have kept records of the value of the property when I moved
in.
A.
You will be liable for CGT on a pro rata basis but this will
reduce steadily as years pass. For example, if you sold it after
owning it for 13 years you would only pay CGT on 3/13ths of any
increase in value after taking into account the 50% discount.
Each week financial advisor Noel Whittaker answers your
questions.
